Leaders of multilateral development banks (MDBs) have agreed to strengthen co-operation to encourage private sector investment in sustainable infrastructure.
The Global Infrastructure Forum 2017 brought together potential investors, representatives from the UN and the G20 as well as heads of MDBs, including the Asian Development Bank (ADB), European Investment Bank and the World Bank.
In order to fulfil commitments that countries made to meet ambitious Sustainable Development Goals, the MDBs pledged to leverage their resources by joining forces to co-finance projects and help generate interest among private investors.
The announcement comes as basic infrastructure services, like water and sewage lines and electricity, are scarce in developing countries.
The ADB said in addition, countries face the urgent need to invest in climate-resilient infrastructure as well as renewable and energy efficient sources.
It added: “With trillions of dollars in capital sitting on the side-lines earning low or even negative returns, deeper engagement with the private sector can create win-win scenarios where investors earn better returns on long term investments and developing countries get much needed investment and expertise.”
Business leaders representing $4.9 trillion (£3.8tn) in assets are urging G20 nations to encourage greater disclosure on carbon risks.